GAP Protection

The difference between the actual cash value of your vehicle and what remains on your lease payout is referred to as "GAP." We offer GAP protection which our customers will count on to cover the difference between the insurance claim received and what you owe. To take advantage of services like these, contact our financing team today!

Gap insurance, also known as Guaranteed Asset Protection insurance, is a type of insurance coverage that helps protect you if you owe more on a loan than your equipment is worth. This situation typically arises when you purchase a piece of equipment and the value of it depreciates quickly in the first few years. However, you still owe a significant amount on your equipment.

Here's how it works:

1. Depreciation: When you buy a piece of equipment, its value depreciates immediately. In the event of an accident or theft, your Truck/Trailer Reefer insurance company typically pays you the current market value of the Truck, which could be less than what you still owe on your Truck loan.
2. Coverage Gap: If your equipment is totalled or stolen, your insurance settlement might not cover the outstanding balance on your loan, leaving you to pay the difference out of pocket.
3. Gap Insurance Coverage: Gap insurance covers the "gap" between what your equipment is worth and what you still owe on it. So if your Truck/Trailer Reefer is totalled or stolen, gap insurance will pay the difference between the actual cash value of your Truck/Trailer Reefer and the amount you still owe on the loan, up to the policy limit.

Gap insurance is typically optional, but it can be beneficial, especially if you're financing a piece of equipment with a minimal down payment or if you have a loan term longer than 48/60 months. The cost can vary depending on factors like the value of your Truck/Trailer Reefer, the length of your loan, and your driving history.